Diversified Resources Group, Inc. Announces Letter of Intent with Drucker & Falk, LLC

Business Wire, August 19, 1999

SARASOTA, Fla.--(BUSINESS WIRE)--Aug. 19, 1999--

DRG, Inc., d/b/a Diversified Resources Group, Inc., (Nasdaq OTC BB:DRGI), a Sarasota, Florida based company, announced today that it has formalized a Letter of Intent with Drucker & Falk, LLC, a major apartment management and development firm headquartered in Newport News, Virginia.

The Letter of Intent calls for Drucker & Falk, LLC to purchase lots for the build-out of 800 apartment units within the Falls River Development in North Raleigh, North Carolina.

The purchase will allow Drucker & Falk, LLC to become the primary apartment builder within the Falls River project. Drucker & Falk, LLC is one of the mid-Atlantic's largest and most respected apartment development and management firms.

Diversified Resources Group, Inc. announced on August 4th that it had signed a Letter of Commitment with Westminster Homes, a division of Washington Homes (NYSE:WHI), for the purchase of 300 single family and multi-family building lots valued in excess of $15,000,000. The Company has also announced that it has an Agreement with Ocean Golf Group for the sale of the Golf Course and destination hotel property tracts for $2,000,000.

"We are extremely pleased with our progress in the Falls River project, and are on schedule to have the entire development contracted for build-out before the end of 1999," stated Mr. Mike Matheny, Director of the Company's Real Estate division.

This press release shall not constitute an offer to sell securities under an exemption from registration pursuant to Regulation D, Rule 504 of the Securities and Exchange Commission. Statements regarding the company's expectations about new and exciting products, future financial performance and other forward looking statements are subject to various risks and uncertainties, including, without limitation, demand and acceptance of new and exciting products, technological advances and product obsolescence, competitive factors and the availability of capital to finance growth.